Cabinet To Hear Of Tax Concerns

Details

Economy

Thursday, 06 December 2012 02:28

By caribarena news

Antigua St. John's - The elected Member of Parliament (MP) for St. Paul’s, Eleston “Namba” Adams, will seek an audience with Cabinet on the matter of supposedly excessive taxes that seem to be having a negative effect on the country’s yachting industry.

Adams told Caribarena on Wednesday that senior representatives of the industry have raised concerns about the Antigua & Barbuda Sales Tax (ABST), which has reportedly resulted in several vessels either spending less time in the twin-island state or avoiding the country altogether.

On Tuesday, sources close to the industry expressed concern that the country continues to lose considerable finances from this year’s Charter Yacht Show, which is currently underway, as vessel owners look to cut back on spending by avoiding hefty taxes imposed on their boats docked at the island’s ports.

Caribarena was reliably informed that these individuals have not only opted to divert their boats, but also their jets and other private carriers to neighboring islands like St. Maarten, St. Lucia and the British Virgin Islands simply because “it’s too expensive to be in Antigua.”

That means, according to this newspaper’s sources, that there will simply be fewer pickups in the country, as evident at the VC Bird International Airport and other ports, with reduced shopping activities on the island for supplies and other necessities. The setback is also said to be affecting service providers, restaurants, car rental outlets and even hotels.

Finance Minister Harold Lovell has acknowledged the expressed concerns of industry operators on the matter, and on Tuesday gave assurances that the matter is being looked into. However the Minister is yet to provide any tangible answers as to how the government intends to move forward on the matter.

“Wherever the yachts go, there go the services also. And you can expect everyone else, including the business jets and jet management personnel, to follow,” this newspaper’s sources said.

The St. Pauls constituency representative said the matter of taxes is entirely in the hands of the Finance Minister, and there is little he can do about the situation, except to voice an opinion on the matter on behalf of his constituents.

On the flipside, however, Adams said on Wednesday that reports over the past few days from event organizers in the bustling English Harbour indicate that almost 100 yachts have nonetheless docked in port. And it is expected that this year’s event would generate some US$1 million in revenue, with some vessels being in port for at least one week.

Nonetheless, Adams said this does not take away from the fact that the country is, according to industry reports, losing yachts that would normally stay in port for months at a time, contributing to both the development of the industry by providing work for tradesmen -- not to mention stimulus for shopping and all round economic injections.

The minister cited repeated concerns brought to him by President of the Antigua and Barbuda Marine Association Franklyn Braithwaite about the “threat” of the ABST to the industry, as yachtsmen have of late opted not to moor their vessels in Antigua’s harbours.

He said Braithwaite’s concerns have only added to the “teething issues” experienced in the recently-implemented E-SEA Clear system designed to reduce hassle of yachts and other vessels looking to dock in Antigua ports.

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